CRPC YOU GOT THIS STUDY CARDS -
MEMORIZE AND BE FAMILIAR WITH THESE AND
YOU GOT THIS. FRIGGEN 110% PASSING
SCORE. Already Passed
1). Payments received in the years before you obtain fra will be reduced $______for every
$________ earned above the earnings cap.
Ans:
2). Old-age benefits of social security recipients may be reduced if the client earns income
from wages and salary during retirement prior to social security's full retirement age. by
how much are the benefits reduced?
Ans: Benefits paid to persons in the years prior to attaining full retirement age are
reduced by $1 for every $2 earned over the limit.
3). How much tax exempt interest is included in ss?
Ans: ALL Tax-exempt interest is included in the computation of the taxation of SS
benefits.
4). When seeking investments that have the least amount of risk, what beta do you choose?
Ans: The absolute lowest one! 0.5
5). What does the coefficient of variation measure? how do you calculate it?
Ans: It measures a securities risk adjusted return. It allows you to compare 2
securities together, so you DIVIDE.
DEVIATION DIVIDED BY THE EXPECTED RETURN.
PaperStoc.com Page 1 of 68
, 6). What kind of money comes out of a roth ira distribution first?
Ans: Contribution amounts always come out of a Roth IRA account first, and then
conversion amounts, if any.
7). When can a distribution be made from a tsa? 4 categories!
Ans: Employee separates from service, attains age 59 1⁄2, becomes disabled or dies,
or qualifies under hardship rules.
8). Non spring poa remains effective when?
Ans: Remains effective after the principal becomes incapacitated. NON Spring. NOT
springing into action until AFTER.
9). Springing poa remains effective when?
Ans: Becomes effective when the principal becomes incompetent or incapacitated.
SPRINGING. Springing into action WHEN it happens.
10). What does medicare part a cover and how do you pay for it?
Ans: Covers hospital charges but patient must pay for all costs in a hospital beyond
150 days.
Provided at no charge. No premium.
11). What does medicare part b cover and how do you pay for it?
Ans: Covers physician services
Premium charge! If you're eligible for Part A, you've got Part B, BUT FOR A CHARGE!
12). What makes you eligible for medicare coverage?
Ans: Over 65 and in a covered occupation meaning you're getting social security.
13). What situations are exempt from the 10% penalty on qualified plan distributions made
before age 59 ½?
PaperStoc.com Page 2 of 68
, Ans: Distributions because of death and annuitized payments based on an individual's
remaining life expectancy.
14). What does "currently" insured mean and what would you qualify for?
Ans: 6 quarters of coverage (so about 2 years paying into social security) What would
you qualify for? ONLY 2 THINGS! Survivor's benefit for dependent child and Lump-sum
death benefit spouse or child. Your spouse doesn't get anything!
15). What does "fully" insured mean and what would you qualify for?
Ans: 40 quarters of coverage (10 YEARS paying into social security!) What would you
qualify for? Everything. Survivor's benefit for your dependent parent who is age 62 or
older. Survivor's benefit for Maxine's spouse or former spouse who is age 60 or older.
Dependent child benefits.
16). How are net long term capital gains taxed?
Ans: Subject to a 0% tax rate if the taxpayer is in a 10% or 15% marginal income tax
bracket.
17). How are net short term capital gains taxed?
Ans: Subject to a taxpayer's ordinary income tax rate.
18). What's the long term gain rate applied to long term collectibles?
Ans: A maximum rate of 28% applies to long-term gain on collectibles.
19). Nonperiodic distributions from an annuity contract prior to the annuity start date?
Ans: LIFO. It is first considered a taxable interest payment and then a tax-free return
of principal. Last in, first out.
20). Calculating the exclusion ratio for a fixed annuity?
Ans: The investment in the annuity contract is divided by the total expected return.
21). What is the tax treatment for a shareholder participating in a common stock's dividend
reinvestment program?
PaperStoc.com Page 3 of 68
, Ans: The shareholder is treated as if he or she received a cash dividend equal to the
fair market value of the shares purchased under the plan. You literally bought more stock
with the dividends. The dividend you got is treated like cash. The dividend is cash and
you used that cash to buy more stock. The fair market value of the shares purchased is
generally taxed at a 15% or 20% rate.
22). What is the valuation date for gifts?
Ans: The valuation date for gifts is when the transfer is completed!
23). Joint tenancy with right of survivorship (jtwros), tenancy by the entirety (tbe), and
community property (cp) are all forms of co-ownership that can be used by who only?
Ans: A husband and a wife.
24). Joint tenants or tenants in common are forms of ownership that can be used by who only?
Ans: Non spouses. Husband and wife can't use these.
25). Do rights of survivorship property bypasses probate?
Ans: Yes.
26). Property held as a tenant in common or in which the decedent solely owned his interest
does not what?
Ans: Bypass probate.
27). The basis that is used in determining gains from mutual funds sales may be calculated by
using what three methods?
Ans: LIFO, Average Cost, Specific Identification method
28). In a community property state, a person's earnings from their job subsequent (after) to the
date of their marriage will be considered community property. we get married, my earnings
then become yours as well. we "share it". community property. if i own property before i
met you, that's still just mine.
Ans: Got it?
PaperStoc.com Page 4 of 68
MEMORIZE AND BE FAMILIAR WITH THESE AND
YOU GOT THIS. FRIGGEN 110% PASSING
SCORE. Already Passed
1). Payments received in the years before you obtain fra will be reduced $______for every
$________ earned above the earnings cap.
Ans:
2). Old-age benefits of social security recipients may be reduced if the client earns income
from wages and salary during retirement prior to social security's full retirement age. by
how much are the benefits reduced?
Ans: Benefits paid to persons in the years prior to attaining full retirement age are
reduced by $1 for every $2 earned over the limit.
3). How much tax exempt interest is included in ss?
Ans: ALL Tax-exempt interest is included in the computation of the taxation of SS
benefits.
4). When seeking investments that have the least amount of risk, what beta do you choose?
Ans: The absolute lowest one! 0.5
5). What does the coefficient of variation measure? how do you calculate it?
Ans: It measures a securities risk adjusted return. It allows you to compare 2
securities together, so you DIVIDE.
DEVIATION DIVIDED BY THE EXPECTED RETURN.
PaperStoc.com Page 1 of 68
, 6). What kind of money comes out of a roth ira distribution first?
Ans: Contribution amounts always come out of a Roth IRA account first, and then
conversion amounts, if any.
7). When can a distribution be made from a tsa? 4 categories!
Ans: Employee separates from service, attains age 59 1⁄2, becomes disabled or dies,
or qualifies under hardship rules.
8). Non spring poa remains effective when?
Ans: Remains effective after the principal becomes incapacitated. NON Spring. NOT
springing into action until AFTER.
9). Springing poa remains effective when?
Ans: Becomes effective when the principal becomes incompetent or incapacitated.
SPRINGING. Springing into action WHEN it happens.
10). What does medicare part a cover and how do you pay for it?
Ans: Covers hospital charges but patient must pay for all costs in a hospital beyond
150 days.
Provided at no charge. No premium.
11). What does medicare part b cover and how do you pay for it?
Ans: Covers physician services
Premium charge! If you're eligible for Part A, you've got Part B, BUT FOR A CHARGE!
12). What makes you eligible for medicare coverage?
Ans: Over 65 and in a covered occupation meaning you're getting social security.
13). What situations are exempt from the 10% penalty on qualified plan distributions made
before age 59 ½?
PaperStoc.com Page 2 of 68
, Ans: Distributions because of death and annuitized payments based on an individual's
remaining life expectancy.
14). What does "currently" insured mean and what would you qualify for?
Ans: 6 quarters of coverage (so about 2 years paying into social security) What would
you qualify for? ONLY 2 THINGS! Survivor's benefit for dependent child and Lump-sum
death benefit spouse or child. Your spouse doesn't get anything!
15). What does "fully" insured mean and what would you qualify for?
Ans: 40 quarters of coverage (10 YEARS paying into social security!) What would you
qualify for? Everything. Survivor's benefit for your dependent parent who is age 62 or
older. Survivor's benefit for Maxine's spouse or former spouse who is age 60 or older.
Dependent child benefits.
16). How are net long term capital gains taxed?
Ans: Subject to a 0% tax rate if the taxpayer is in a 10% or 15% marginal income tax
bracket.
17). How are net short term capital gains taxed?
Ans: Subject to a taxpayer's ordinary income tax rate.
18). What's the long term gain rate applied to long term collectibles?
Ans: A maximum rate of 28% applies to long-term gain on collectibles.
19). Nonperiodic distributions from an annuity contract prior to the annuity start date?
Ans: LIFO. It is first considered a taxable interest payment and then a tax-free return
of principal. Last in, first out.
20). Calculating the exclusion ratio for a fixed annuity?
Ans: The investment in the annuity contract is divided by the total expected return.
21). What is the tax treatment for a shareholder participating in a common stock's dividend
reinvestment program?
PaperStoc.com Page 3 of 68
, Ans: The shareholder is treated as if he or she received a cash dividend equal to the
fair market value of the shares purchased under the plan. You literally bought more stock
with the dividends. The dividend you got is treated like cash. The dividend is cash and
you used that cash to buy more stock. The fair market value of the shares purchased is
generally taxed at a 15% or 20% rate.
22). What is the valuation date for gifts?
Ans: The valuation date for gifts is when the transfer is completed!
23). Joint tenancy with right of survivorship (jtwros), tenancy by the entirety (tbe), and
community property (cp) are all forms of co-ownership that can be used by who only?
Ans: A husband and a wife.
24). Joint tenants or tenants in common are forms of ownership that can be used by who only?
Ans: Non spouses. Husband and wife can't use these.
25). Do rights of survivorship property bypasses probate?
Ans: Yes.
26). Property held as a tenant in common or in which the decedent solely owned his interest
does not what?
Ans: Bypass probate.
27). The basis that is used in determining gains from mutual funds sales may be calculated by
using what three methods?
Ans: LIFO, Average Cost, Specific Identification method
28). In a community property state, a person's earnings from their job subsequent (after) to the
date of their marriage will be considered community property. we get married, my earnings
then become yours as well. we "share it". community property. if i own property before i
met you, that's still just mine.
Ans: Got it?
PaperStoc.com Page 4 of 68
